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Foster Electric Company, Limited (JP:6794)
:6794
Japanese Market
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Foster Electric Company, Limited (6794) AI Stock Analysis

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JP:6794

Foster Electric Company, Limited

(6794)

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Neutral 69 (OpenAI - 5.2)
Rating:69Neutral
Price Target:
¥3,359.00
▲(23.90% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by solid financial stability and improved profitability, offset by a meaningful near-term red flag in cash generation (TTM negative free cash flow). Technicals are supportive with price above key moving averages and positive MACD, while valuation is fair (P/E ~19) with a moderate dividend yield (~2.6%).
Positive Factors
Conservative Balance Sheet
Low leverage gives Foster Electric financial flexibility to fund product development, absorb industry volatility, and maintain supplier and customer support without excessive reliance on external financing.
Negative Factors
Negative TTM Free Cash Flow
Weak recent cash conversion raises questions about earnings quality and the timing of working-capital or capital-expenditure needs, potentially limiting internally funded investment if the pattern persists.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Low leverage gives Foster Electric financial flexibility to fund product development, absorb industry volatility, and maintain supplier and customer support without excessive reliance on external financing.
Read all positive factors

Foster Electric Company, Limited (6794) vs. iShares MSCI Japan ETF (EWJ)

Foster Electric Company, Limited Business Overview & Revenue Model

Company Description
Foster Electric Company, Limited operates globally as a manufacturer and distributor of a diverse range of audio and electronic devices. Its operations are structured into three principal segments. The Speaker division focuses on developing and su...
How the Company Makes Money
Foster Electric makes money primarily by designing, manufacturing, and selling electro-acoustic components and finished audio-related products to corporate customers, typically on a B2B/OEM or ODM basis. Key revenue streams include (1) sales of sp...

Foster Electric Company, Limited Financial Statement Overview

Summary
Profitability has materially recovered versus 2022 and the balance sheet is conservatively levered, but recent cash conversion has weakened: TTM free cash flow is negative despite positive earnings, pointing to near-term quality-of-earnings and working-capital/capex timing risk.
Income Statement
71
Positive
Balance Sheet
78
Positive
Cash Flow
45
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue137.87B134.91B137.61B122.45B121.34B91.11B
Gross Profit23.02B23.64B24.12B18.84B16.16B7.49B
EBITDA10.04B11.07B9.99B7.61B6.01B-4.55B
Net Income3.59B4.95B3.90B2.31B849.00M-7.02B
Balance Sheet
Total Assets113.07B112.24B106.83B102.75B92.87B86.15B
Cash, Cash Equivalents and Short-Term Investments19.98B20.66B21.50B20.86B13.65B13.19B
Total Debt11.88B8.97B8.57B16.94B17.46B13.37B
Total Liabilities36.70B35.31B38.09B38.42B36.35B34.51B
Stockholders Equity67.30B67.71B60.87B58.01B51.10B47.16B
Cash Flow
Free Cash Flow-1.81B242.00M11.21B10.67B-2.18B-15.43B
Operating Cash Flow6.08B6.94B14.83B15.43B354.00M-12.77B
Investing Cash Flow-7.89B-5.78B-844.00M-8.54B-1.32B-3.07B
Financing Cash Flow-1.95B-2.33B-9.88B-4.44B1.78B6.77B

Foster Electric Company, Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2711.00
Price Trends
50DMA
2925.26
Positive
100DMA
2987.38
Negative
200DMA
2859.19
Positive
Market Momentum
MACD
36.91
Negative
RSI
49.45
Neutral
STOCH
48.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6794, the sentiment is Neutral. The current price of 2711 is below the 20-day moving average (MA) of 2953.20, below the 50-day MA of 2925.26, and below the 200-day MA of 2859.19, indicating a neutral trend. The MACD of 36.91 indicates Negative momentum. The RSI at 49.45 is Neutral, neither overbought nor oversold. The STOCH value of 48.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6794.

Foster Electric Company, Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
¥150.47B10.3012.43%1.57%0.75%-19.03%
70
Outperform
¥88.36B10.791.99%6.32%186.26%
69
Neutral
¥68.65B18.622.73%-0.13%-16.53%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
61
Neutral
¥10.06T40.863.86%1.03%-0.76%-31.01%
60
Neutral
¥22.71T-104.60-4.05%0.73%1.02%-119.24%
41
Neutral
¥3.16B-3.114.68%4.08%-801.85%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6794
Foster Electric Company, Limited
2,982.00
850.52
39.90%
JP:6752
Panasonic
4,375.00
2,871.28
190.94%
JP:6758
Sony
3,870.00
-53.09
-1.35%
JP:6632
JVCKENWOOD Corporation
1,032.50
-196.38
-15.98%
JP:6694
Zoom Corp.
715.00
110.42
18.26%
JP:6810
Maxell, Ltd.
2,448.00
431.02
21.37%

Foster Electric Company, Limited Corporate Events

Foster Electric Says Tariff, Cost and FX Headwinds Are Temporary as Medium-Term Plan Stays on Track
Aug 7, 2026
Foster Electric addressed investor questions after posting a quarterly loss, explaining that its Speaker segment was hit by temporary factors including the lingering accounting impact of previously paid U.S. tariffs, surging raw material costs lin...
Foster Electric Profit Slumps in Q1 as Sales Rise, but Dividend Hike Signals Confidence
Aug 7, 2026
Foster Electric Company, Limited reported consolidated net sales of ¥35.1 billion for the three months ended June 30, 2026, up 9.2% year on year, but saw operating profit plunge 66.9% to ¥585 million and profit attributable to owners of ...
Foster Electric Blames Temporary Cost Pressures for Q1 Loss, Keeps Full-Year Outlook Intact
Aug 7, 2026
Foster Electric detailed the factors behind its first-quarter loss, citing temporary pressures in its Speaker segment from lingering U.S. tariffs booked as inventory sold through, higher material costs driven by Middle East-related commodity price...
Foster Electric’s Quarterly Profit Slumps Despite Higher Sales, Dividend Outlook Raised
Aug 7, 2026
Foster Electric Company, Limited reported consolidated net sales of ¥35.1 billion for the quarter ended June 30, 2026, a 9.2% year-on-year increase, but profits fell sharply as operating profit dropped 66.9% to ¥585 million and profit at...
Foster Electric Teams With Activist Shareholder Axium on New Medium-Term Plan
Jul 30, 2026
Foster Electric Company, Limited has begun formulating a new medium-term business plan, dubbed “North Star,” in close collaboration with major shareholder Axium Capital, which holds about 25% of its voting rights. The new plan will rep...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 17, 2026